Dec 7 (Reuters) - Shares in Belgian plastics company
Recticel jumped on Tuesday after investors backed the
sale of its engineered foams business, a deal some analysts said
might deter a hostile bid from Austrian rival Greiner that they
had criticised as too low.
Shareholders on Monday gave the green light for Recticel to
sell the foams unit to U.S.-based Carpenter Co., which had made
a binding 656 million euro ($739 million) offer in October.
Recticel, which is on track to become a "pure-play"
insulation company, expects regulatory approval in the coming
Its shares were up 6.17% at 17.20 euros at 1151 GMT.
Greiner, keen to buy the foams business, had planned to buy
a 27% stake in Recticel from its top shareholder Compagnie du
Bois Sauvage for 13.50 euros each and extend the offer
to other investors.
However, some analysts had criticised the offer as too low,
and European Union regulators opened an investigation into the
potential deal in November, saying it could hurt competition and
lead to price hikes.
ING researchers said they believed Greiner's deal was now
significantly less probable, while Berenberg analyst Christoph
Greulich said the low bid price meant it had been "highly
unlikely to succeed anyway."
KBC Securities said that, despite the setback, Greiner could
still hold on to its plan to buy Bois Sauvage's stake and become
and important shareholder.
Greiner did not immediately respond to a request for
Recticel CEO Olivier Chapelle told reporters he did not
expect any great difficulties with antitrust regulators over the
deal with Carpenter Co.
"If this were the case," he added, "I believe remedies could
He did not rule out considering other possible takeover bids
more favourable to shareholders.
Recticel is planning to sell its Bedding business line to
Aquinos Group, and expects Compagnie du Bois Sauvage to support
($1 = 0.8879 euros)
(Reporting by Sarah Morland and Diana Mandiá
Editing by Mark Potter)